The truth is, we never know what’s next. Life is full of changes, and we learn to change with it. Adapting our financial goals is no different.
From saving and investing to creating financial security for loved ones to planning for retirement—your clients will need the right advice at the right time. Principal Pivot Series (Pivot) can help. It’s lifecycle product that can help your clients through every step of their financial planning journey.
Picking the right investment options can be intimidating for clients, and they’ll look to you for guidance.
It’s good to know you can rely on us to help. We start by providing quality investments to choose from. We’re proud of the vast selection of investment options available in the Principal® Pivot Series Variable Annuity. Their proven history—as illustrated by their Morningstar RatingsTM—can help give clients confidence in their choices.*
We understand the importance of choice. We want to provide investors with the opportunity to diversify their portfolios not only by asset class and investment strategy, but also by management style.
We’ve developed three different tracks that are designed to match different investment preferences.
And rest assured that as your client’s goals or risk tolerances change, so can their investment choices. There are no extra fees (or taxes) for moving funds between subaccounts. So clients can reallocate at any time.
We know fees are a concern for many investors, that’s why we offer affordable options as part of our fund portfolio. In fact, you can create a well-balanced portfolio for a total annual cost under 2%.
Our Investor guide can help you talk clients through their different options and determine which model might suit them best.
Pivot offers your clients another tax-deferred savings option. They’ll benefit from compounding interest on both their premium(s) and any interest earned. And there are no IRS contribution limits—so they don’t have to restrict their retirement savings goals.
How your clients' investment could benefit from tax deferral:
Initial investment
Value of taxable investment
Value of tax-deferred investment
After tax
Each investment started with a $100,000 investment compounding 10% per year for 20 years.
The value of the investment that isn't tax-deferred only grows to $401,694 at the end of 20 years because taxes were paid on earnings annually at a tax rate of 28%.
The value of the tax-deferred investment grows to $672,750 at the end of 20 years. Since taxes aren't paid on any potential earnings, the money compounds faster than if it was taxed. Even after taxes, the accumulated value would be $512,380.
A client could also elect to take partial distributions from their annuity rather than a lump sum distribution. This allows the remaining accumulated value to continue to grow tax deferred, and the client doesn’t have to pay taxes all at once. This approach gives you flexibility in managing your client’s taxes.
Create guaranteed income while still accumulating. Pivot’s Flexible Pension Builder rider allows your clients to create guaranteed income at a pace that works for them—and without the extra fees often associated with guaranteed income riders.
Income three ways. Pivot’s Flexible Pension Builder rider is automatically issued for clients who meet the age requirements and are the sole owner or annuitant. And we offer them three different ways to lock in their investment gains. Clients can choose the one that works for them.
There are different ways to transfer money into the Flexible Pension Builder:
Automatically transfer 3% or 5% of your accumulated value each contract anniversary.
Transfer all or a portion of your accumulated value at any time.
Choose the market sweep feature.
Fixed period income solutions. The Flexible Pension Builder rider can be used to create lifetime income, but it can also be used to create short-term income solutions for those who need it.
A standard death benefit is automatically issued with Pivot contracts, and clients also have the option of choosing between two enhanced death benefit options.
The death benefit can be an important feature for clients who want to help provide financial security to their beneficiary(ies) but are uninsurable through traditional life insurance. Our death benefits require no underwriting.
Our enhanced annual step-up death benefit allows clients to use annual gains in their account value to create a greater guaranteed death benefit.